Fabrinet (FN)
Debt-to-equity ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 0 | 15,202 | 27,358 | 39,514 |
| Total stockholders’ equity | US$ in thousands | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 | 974,409 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.01 | 0.02 | 0.04 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,745,740K
= 0.00
The debt-to-equity ratio of Fabrinet has shown a decreasing trend over the past five years, from 0.04 in June 2020 to 0.00 in both June 2023 and June 2024. This indicates that the company has been relying less on debt financing compared to equity financing. A debt-to-equity ratio of 0.00 suggests that the company either has no debt or a very minimal amount of debt relative to its equity.
A lower debt-to-equity ratio generally indicates a lower financial risk for the company, as it implies lower leverage and a stronger equity position. This may be perceived positively by investors and creditors, as it suggests that the company may be better able to weather economic downturns or financial challenges. However, it's important to note that a very low debt-to-equity ratio may also indicate underutilization of debt financing, which can limit the company's growth opportunities.
Peer comparison
Jun 30, 2024